It’s Thanksgiving, a holiday that once celebrated the harvest season. Although many of us may not be directly connected to agriculture, we still gather on Thanksgiving with our loved ones to share whatever “bounty” we have. This practice doesn’t have to begin and end with food. Why not incorporate the spirit of sharing into your overall financial strategy?
Here are a few suggestions for doing just that:
• Make financial gifts. You could give shares of stock to your loved ones, or perhaps give them money to help fund their IRAs. You can give up to $14,000 per year, per recipient. If you are married, you and your spouse can each give up to the $14,000 yearly limit.
• Review your insurance policies. If something were to happen to you, is your life insurance sufficient to take care of your family? Would there be enough money available to pay off your mortgage, send your children to college and help your surviving spouse meet at least some of his or her retirement expenses? A financial professional can help you assess your needs.
• Consider involving your family with your estate plans. To help ensure your wishes get carried out the way you intended, keep family members informed of your strategy, which could involve your will, living trust, power of attorney and other legal documents.
And keep your beneficiary designations up to date on your retirement accounts and life-insurance policy. If you’ve gone through changes in your family situation, work with your financial advisor and your tax and legal advisors to make ensure your investment strategy aligns with your estate goals.
Consider these strategies sharing your “bounty” with your loved ones all year long and throughout your lifetime.
Evans is a financial advisor at Edward Jones in Richmond Hill.